Paw Ss OF INDIANA 


RELATING TO 


BUILDING AND LOAN 
ASSOCIATIONS 


Be 


INDIANAPOLIS: 
WM. B. BURFORD, CONTRACTOR FOR STATE PRI 
1913 


LAWS OF INDIANA 


RELATING TO 


Building and Loan Associations 


(Senate Bill No. 33) 
AN ACT entitled an act concerning building and loan associations 


Definition. 


~Seorron 1. Be wt enacted by the General Assembly of 
the State of Indiana, That every association heretofore or 
hereafter incorporated under any law providing for the 
incorporation of building, loan fund and savings associa- 
tions, and every association heretofore or hereafter incor- 
porated under any law for the purpose of assisting its 
members to accumulate and invest their savings, by ac- 
cumulating a fund from periodical payments on its stock, 
or otherwise, to be loaned among its members, shall be 
known in this act as a building and loan association. Such 
associations organized under the laws of this State shall 
be known as ‘‘domestic’’ associations, and those organized 
under the laws of any other State, Territory or Nation, 
shall be known as ‘‘foreign’’ associations. 


DOMESTIC ASSOCIATIONS. 


Organization. 


Sec. 2. Any number of persons, not less than ten, who 
are residents of this State, may associate themselves to- 
gether for the purpose of organizing a building and loan 
association, and for that purpose they shall make, sign and 
acknowledge, before some person authorized by the laws 
of this State to take acknowledgments of deeds, articles of 
association in writing which shall state: 


(3) 


a 


Virst. The corporate name adopted by said associa- 
tion which shall not be the same as nor similar to the name 
of any other association incorporated in this State. The 
words ‘‘building and loan association,’’ or ‘‘savings and 
loan association’’ shall form part of the name of every 
corporation hereafter created under this act. 

Second. The purposes for which the association is 
formed. 

Third. The amount of its authorized capital stock; the 
number of shares into which it is divided; the par value of 
each share; and the number of shares subseribed for, which 
shall not be less than one hundred in number. 

Fourth. The names and places of residence of the sev- 
eral incorporations and the number of shares subseribed by 
each. 

Fifth. The number of its directors and the names of 
those who shall serve as directors for the first year. 

sixth. A description of the corporate seal. 

Seventh. The name of the city or town where such as- 
sociation is to be located. 


Filing Articles. 


Sec. 3. When executed as aforesaid, said articles of 
association shall be approved by, and filed with, the Sec- 
retary of State, and a copy thereof, together with a certi- 
ficate under the hand of the Secretary of State, and the seal 
of his office, reciting that said copy is true and complete 
and that said articles have been duly approved by and filed 
with the Secretary of State, shall be recorded in the office 
of the recorder of the county where said association is lo- 
cated. Upon the recording of said certified copy, the per- 
sons named in the articles of association, their associates 
and successors, shall become a body corporate, and in their 
corporate name may contract, sue and be sued, and shall 
have and exercise such powers as are herein granted and 
such other powers as are necessary to enable such associ- ' 
ations to carry out the purposes of its organization, not in- 
consistent with the provisions of law. The Secretary of 


5 
State shall collect for the benefit of the State, for filing ar- 
ticles of incorporation of any such association, or any cer- 
tificate of increase of stock, the sum of five dollars for each 
fifty thousand dollars of capital stock or fractional part 
thereof. 


Management and Elections. | 


Sec. 4. The business of the association shall be man- 
aged by a board of directors of not less than five members 
who shall be stockholders and who shall be elected by the 
stockholders. Notice of such election shall be given at 
_ least ten days previous thereto by publication in some 
newspaper of general circulation published in the town or 
city where such association is located, or if no such news- 
paper is published, then the newspaper nearest thereto. 
Directors shall be elected for terms not exceeding three 
years, and in case the term is longer than one year, then 
an equal number, as nearly as may be, shall be elected each 
year. Such association shall adopt by-laws for the regu- 
lation and management of its business; and the periodical 
meetings of the stockholders and directors, the number, 
functions and qualifications of the officers of any such as- 
sociation, their terms of office and the time and mode of 
their election and of the election of directors, the manner 
of voting and the qualifications of the electors, the number 
of shares to be voted by each member in person or by 
proxy, the kind of stock to be issued, the terms and condi- . 
tions on which stock shall be issued and paid for, loans 
made and repaid, withdrawals allowed, and the manner of 
conducting the business of such association shall be deter- 
mined by the by-laws, subject to the laws of this State: 
Provided, That at any stockholders’ meeting, no stock- 
helder shall vote more than twenty shares of stock in his 
own right. 


Bonds 


Sec. 5. The Secretary and treasurer and any other offi- 
cer or agent having the custody or charge of money or se- 


6 


curities belonging to the association, before entering upon 
their duties, shall give bonds in suitable amounts and with 
good and sufficient surety, to be approved by the board of | 
directors; said beard shall annually examine all such bonds 
and pass on the sufficiency of the same and may require 
new or additional bonds at any time, and no director shal! 
become a surety on any such bond. 


Non-Election of Directors. 


Sec. 6. No building and loan association shall cease 
or expire frem neglect on the part of the corporation to 
elect directors or officers at the time mentioned in the by- 
laws, and all directors and officers, elected by such corpo- | 
ration shall continue in office until their successors are duly 
elected and qualified. 


stock Lien. 


Sec. 7. The capital stock of any such associations may 
be fixed originally in any sum and may be increased or de- 
creased to any sum by the adoption of a resolution for such 
increase or decrease by the board of directors. Upon a 
certified copy of such resolution, under the hand of the 
president and secretary, attested with the corporate seal, 
being filed in the office of the Secretary of State, and a copy 
thereof duly certified by the Secretary of State being filed 
in the office of the recorder of the county where such asso- 
ciation is located, and the payment of the fees required by 
law for such inerease or decrease the authority to issue or 
decrease the stock as thus increased or decreased shall be 
deemed complete. The capital stock shall be divided into 
chares of such denomination, not exceeding five hundred 
dollars each, as the by-laws may prescribe and may be is- 
sued in series, if the by-laws so provide, and all stock may 
be fully or partially paid in advance or may be paid, in in- 
stallments as the by-laws may provide. No periodical pay- 
ments of installments of stock shall be required exceeding 
fifty cents per week on each one hundred dollars of stock. 
Every share of stock shall be subject to a lien for the pay- 


7 


ment of unpaid installments and other charges incurred 
thereon under the constitution and by-laws and the by-laws 
may prescribe the form and manner of enforcing such lien. 
New shares may be issued in lieu of any shares withdrawn, 
redeemed or cancelled. 


Collection from Members. 


Sec. 8. It shall be unlawful for any building and loan 
association doing business in the State of Indiana to charge 
or collect from any of the members thereof, on any stock 
or shares of stock therein, any money or moneys, other 
than membership fees, loan fees, dues on stock, premium, 
interest and fines. All membership fees, fines, premium 
and interest shall be credited to the earnings and all ex- 
penses shall be paid out of the earnings of such building 
and loan association, and no association shall charge or 
eollect a membership fee of more than fifty cents per share. 


Withdrawals. 


Src. 9. Any stockholder, or the legal representative of 
any deceased stockholder, whose stock is unpledged for a 
loan, wishing to withdraw from such association, may do 
so upon three months’ notice in writing to the board of 
directors, when such withdrawing stockholder shall be en-. 
titled to receive the full amounts of dues paid in upon the 
stock to be withdrawn, together with all declared dividends 
thereon, less all fines and other charges provided by the 
by-laws and a pro rata share of the losses sustained during 
such stockholders’ term of payment: Provided, That not 
more than one-half of the funds received by the association 
in any one month shall be applicable to the. payment of 
withdrawing stockholders, unless otherwise ordered by the 
board of directors; and when the demands of withdrawing 
stockholders exceed the funds applicable to their payment, 
they shall be paid in the order in which their notices of 
withdrawal were filed with the association. The board may 
in its diseretion waive the notice of withdrawal hereinbe- 
fore required. No fine shall be charged to any deceased 


8 


member’s account for any fault occuring after his death 
unless the legal representative of the decedent shall have 
assumed the future payments on the stock. 


Fines. 


Sec. 10. Such association shall have power to provide 
for the assessment of fines for non-payment of dues, pre- 
mium or interest, but such fines shall not exceed ten per 
centum of the amount of the delinquent payments or such 
further sums as shall not exceed five cents per share on 
each deliquent payment and shall be charged only onee 
thereon. 


Loans and Investments. 


Sec. 11. Such association shall have the power to loan 
or advance to the stockholders thereof, moneys of the as- 
sociation and to secure repayment. of such money and the 
performance of all other conditions upon which the loans 
are made by pledge of shares in said association and note 
or bond and mortgage on real estate in this State which 
shall be a first lieu theron, except taxes and special as- 
sessments, and except the prior liens held and owned by 
said association; to loan the funds of the association upon 
the pledge of the shares of such association, not to exceed 
ninety per centum of the withdrawal value of such shares. 
In ease there is no demand for loans on the part of stock- 
holders on real estate mortgages or the stock of the asso- 
elation, such association shall have the power to loan the 
moneys of the association to its stockholders, or to other 
than its stockholders upon good and ample real estate or 
personal security, or invest the same in other approved 
securities. The by-laws of the association shall prescribe 
the manner of awarding loans, the rate of interest to be 
charged, not exceeding the then legal contract rate, and 
the time and manner when the interest and premium, if 
any, shall be paid. 


Premiums. 


Seo. 12. Such association may provide in its by-laws 
that the loans shall be made to the members of the associa- 
tion who shall bid the highest premiums for the preference 
or priority in procuring loans, the premiums to be payable 
at one time or in installments, and it shall be competent 
and lawful for the borrower from such association to agree, 
in writing upon a given rate of premium in addition to the 
interest to be paid upon such loan, without bidding. All 
contracts heretofore made between any borrower and any 
such association for the payment of any premiums, with 
or without any bidding, are hereby legalized. No prem- 
iums heretofore contracted for, or to be contracted for un- 
der this section, with or without bidding, shall be deemed 
usurious, and the same may be collected by law as debts 
of like amount are now collected in this State. 


Repayment of Loans. 


Sec. 13. Any borrower may repay his loan at any 
time, and may at the same time withdraw from the associ- 
ation, and for that purpose he shall pay to the association 
the full face amount of the principal of his loan with all in- 
terest, fines, and other charges accrued thereon under the » 
by-laws or the terms of any note, mortgage or other evi- 
dence of indebtedness given for said loan, deducting there- 
from the withdrawal value of his stock pledged to secure 
such loan, as provided in the case of withdrawals of un- 
pledged stock, and deducting also, in case the full amount 
of premium was paid in advance, so much of the premium 
paid by him on his loan as shall bear the same proportion 
to the whole premium by him paid, as the unexpired term 
for which the loan was made bears to the whole time for 
which the loan was made; and on such payments being 
made, the stock held by such person upon which his loan 
was made, shal! be surrendered to the association and ecan- 
celled, and thereupon the association shall deliver to such 
borrower his note, or bond and mortgage, or other evidence 
of such loan, and shall also enter of record a full satisfac- 
tion of such mortgage. | 


10 


Power to hold Real Estate. 


Sec. 14. Any such association may purchase at any 
sale, public or. private, any real estate upon which such 
association may have or hold any mortgage, len or other 
incumbranee, or in which it has an interest; it may also 
acquire and own real estate for the purpose of occupying 
the same as its own business building and it may also ac- 
quire and own real estate in fee simple, and improve the 
same, for the purpose of selling the same to its stockholders 
on a contract of sale with such stockholder providing for 
sale to such stockholder at the cost price of such real estate, 
or improvements, or both, to such association, made and 
executed coneurrently with said purchase, and the real 
estate so purchased, and any other real estate that such 
corporation may hold or be entitled to when this act takes 
effect, 1t may sell, convey, exchange, lease or mortgage at 
pleasure to any person, or persons whatever. No such as- 
sociation shall aequire or hold any real estate except as 
herein provided. 


Borrowed Money. 


Sec. 15. Any such association shall have power to bor- 
row money for any of its corporate purposes and issue its 
evidence of indebtedness therefor. 


Infants as Stockholders. 


Sec. 16. Infants may become stockholders in any such 
association the same as adults and such infant stockholders 
shall be subject to the same duties and liabilities as re- 
spects their stock as adult members. Any receipt, release, 
acquittance or discharge given to the association by an in- 
fant stockholder shall be binding upon the infant to the 
same extent as if he were of full age. 


Borrower Misrepresenting Age. 


Src. 17. When, in case of any loan made by any such 
corporation, the borrower, or any other person furnishing 


la 


security in behalf of the borrower, shall, as an inducement 
to the corporation to make the loan, represent to it in writ- 
ing that he or she is over the age of twenty-one years. 
whereas in fact such person so representing is under law- 
ful age and the association is thereby deceived, and the 
loan is apon such representation made, neither such per- 
son so representing nor anv one in his or her behalf shall 
afterwards be allowed as against said corporation to take 
advantage of that fact that he or she was not of full age, 
but such person shall be estopped by such representation. 


Foreclosure. 


Sec. 18. In case any borrower shall fail or neglect to 
pay dues on stock, interest, premiums or fines as provided 
by the by-laws or the terms of his note, bond, or mortgage 
or other evidence of indebtedness, for the period of three 
months, or shall be in default in the performance of any 
of the obligations imposed upon him thereby, and such de- 
fault shall continue three months, then the whole of said 
indebtedness shall become and be immediately due and 
payable at the option of such association and payment 
thereof may be enforced by proceedings on his securities 
according to law. 


Transfer of Securities. 


Sec. 19. The bonds, notes and mortgages given by 
members thereof, belonging to any such association, and 
secured by pledge of the stock thereof, shall not be assign- 
able except upon an order of the circuit court, or the judge 
thereof in vacation, of the county in which the principal 
office of said association is situated. 


Consolidation of Association. 


Src. 20. Any two or more associations of this State 
may consolidate into a single corporation by a majority 
vote of all the stockholders of each of the different asso- 
eiations at a special meeting of each association called for 
{hat purpose, of which at least thirty days’ notice shall 


12 


have been given to each member, the consolidation to be 
upon such terms as shall be mutually agreed upon by the 
directors of such associations, and such terms shall be 
plainly set forth to each member in the notice of such spe- 
cial meetings. Any member not consenting to such con- 
solidation shall be entitled te receive the withdrawal value 
of his stock in settlement or to have such value applied in 
part settlement of his loan, if he be a borrower. 


Liquidation and Settlement. 


Sec. 21. Any building and loan association organized 
under the laws of this State and doing business within this 
State, may, if the stockholders deem it advisable, go into 
liquidation, and for the purpose of so doing may, at any 
regular or called meeting of the stockholders, adopt a reso- 
lution declaring that such association intends to go imto 
‘iquidation and discontinue business as a building and loan 
association. A eopy of such resolution duly certified by 
the president and secretary of such asseciation under the 
seal thereof, shall be transmitted to the Auditor of State 
within ten days after the passage thereof, together with a 
fee of one dollar for the filing of the same in his office; and 
thereupon the Auditor of State shall issue his certificate re- 
citing that such resolntion has been filed in his office, and 
that such association is in liquidation. After the filing of 
such notice, it shall not be lawful for such association to 
issue stock, or to loan or advance its money to members 
or to any other person or persons, but all of the income 
and receipts of such association, in excess of the actual ex- 
pense. of managing the same, shall be applied to pay off 
first the indebtedness and then the stock in such associa- 
tion mpon which no loans have been made, the same to be 
paid pro rata. The board of directors of such association 
in liquidation may adopt such rules and make such orders 
as shall be just and equitable for the sale and disposition 
of all propertv held by such association, the assessment 
to meet loses, if any, and for the division of the profits 
of such association. Proceedings for the appointment of 


13 


a receiver for an association shal] not be entertained by 
any court except on the written recommendation of the 
Auditor of State, or upon the written request of at least: 
twenty-five members duly acknowledged by each member 
signing the same before some officer authorized to take the. 
acknowledgement of deeds. | 


Taxation. 


Sec. 22. All building and loan associations, as such, 
shall be exempt from taxation except upon their real es- 
tate. Shares of stock on which loans have not been made 
or advaneed by the association, shall be considered and 
held as credits of the members, individually, and listed by 
them, and assessed against them for taxation as other 
property. 


Contingent Fund. 


. Sec. 23. Such association shall set aside from the 
eross profits at least three per cent. thereof each year as 
a sinking fund to provide against contigent losses, until 
the total amount of such fund so set aside shall equal five 
per centum of the assets of such association, and such sink- 
ing fund shall in no case exceed 10 per centum of the as- 
sets of such association: Provided, That no association 
shall be required to reduce its dividend below six per cent. 
per annum for that purpose. 


Dividends. 


Src 24. . Dividends shall be declared, credited or paid 
on the stock, in proportion to the amount paid in on such 
stock quarterly, semi-annually or annually as the by-laws 
may provide, but no dividends shall be declared, credited 
or paid by any such association except out of net profits 
collected, after deducting from the earnings all expenses 
of operation and lesses sustained. 


Department Created. 


Src. 25. There is hereby established in the office of the 
Auditor of State a building and loan association depart 


14 


ment under the control and direction of the Auditor of 
State, who shall be ex-officio building and loan association 
inspector and shall be charged with the execution of the 
laws of this State relating to building and loan associa- 
tions. He is hereby authorized to employ a clerk in his 
office to be known as the building and loan clerk, who shall 
be paid as provided by law, and three building and loan 
examiners, not more than two of whom shall be of the 
same political party, each of whom shall be paid a salary 
of eighteen hundred dollars per year. Said building and 
loan clerk and examiners shall also be paid their actual 
and necessary traveling and hotel expenses while absent 
from their places of residence, incurred in the perform- 
ance of their official duty. Hach examiner shall file with 
the Auditor of State an itemized statement of expenses, 
duly verified by his oath, and the Auditor of State, after 
examining and approving the same, shall issue his war- 
rant therefor. Such building and loan clerk and examiners 
shall be appointed for a term of two years and shall be 
subject to removal at any time by the Auditor of State and 
shall qualify before entering upon the discharge of their 
duties, by giving a bond payable to the State of Indiana in 
the sum of five thousand dollars to be approved by the 
Auditor of State, conditioned for the faithful performance 
of their duties as prescribed by law. Such examiners shall 
have the powers and perform the duties herein prescribed 
under the direction of the Auditor of State. All records 
and papers relating to the business of the association when 
its business is fully completed after voluntary liquidation 
shall be filed in the office of the Auditor of State for future 
reference. 


Annual Reports. 


Sec. 26. Every domestic building and loan association 
shall in the month of January of each year file in the office 
of the Auditor of State a statement of its condition at the 
close of business on the 31st day of December preceding. 
Such statement shall be under the oath of the president 


15 


and secretary and-at least three directors of such associa- 
tion, and shall show in such form as may be prescribed by 
the Auditor of State, the name and location of such associ- 
ation, date of incorporation, the names of its officers and 
directors, the amount of its authorized capital stock and 
the amount of its capital stock paid in, the number of mem- 
bers and of shares subscribed for, and separately the 
amount of membership fees, dues, interest, premiums. 
fines, assessments, and all other receipts; also all sums 
paid on loans withdrawals, losses, salaries and all other 
expenses, dividends, interest and all other expenditures; 
it shall also contain a detailed statement of the assets of 
such association, the character of such assets and the fair 
eash value thereof, together with the nature and fair cash 
value of all securities of such association; it shall also con- 
tain a detailed statement of the liabilities of such associa- 
tion and the character of such labilities, the par value and 
the amount of dues or assessments payable on each share 
of stock issued by such association, when such dues and as- 
sessments are pavable, the amount of premiums and the 
interest charged on loans made by such association, the 
amount and rate of interest paid on debenture, paid-up or 
other stock issued by such association or other moneys, re- 
eeived by it, and such other information concerning the 
business of such association as may from time to time be 
required by the Auditor of State. Such associations shall 
file in the office of the Auditor of State copies of their by- 
laws or rules and copies of each of the several kinds of cer- 
tificates issued to their stockholders or other investors and 
copies of any amendments or charges therein. 


Failure to Report. 


Sec. 27. ‘The president and secretary of any such as- 
sociation failing to make and file the reports required by 
this act within thirty days after the same are due, shall 
be deemed guilty of a misdemeanor, and upon conviction 
thereof, shall be fined in any sum not exceeding one hun- 
dred dollars. Upon failure to file such report it shall be 


16 


the dutv of the Anditor of State to notify the president and 
secretary of such association of such failure, and if such 
report is not filed within thirty days from the date of such_ 
notice, then it shall be the duty of the Auditor of State to 
examine such association as provided in section thirty of 
this act. , 


Accounts. 


Sec 28. All such associations shall keep full and cor- 
rect books of account showing all their operations and the 
Auditor of State is hereby authorized to formulate and 
prescribe such regulations respecting the manner and form 
of keeping such accounts, as he shall deem necessary for 
the making of reports and examinations required by law, 
such regulation to be uniform for all accounts of the same 
class. 


Annual Statement to Members. 


Sec. 29. It shall be the duty of every such association 
to furnish, within thirty days after the annual statement 
to the Auditor of State, an annual written or printed state- 
ment of the condition of such association to each of the 
stockholders thereof, which said statement shall be deliv- 
ered personally or mailed to the stockholder. Such state- 
ment shall show separately the amount of membership 
fees, loan fees, dues, interest and fines, together with all 
moneys received by it from any source whatever, and a 
full showing of all payment on loans, dividends, salaries 
and all expenditures of every character, being a full and 
complete financial staternent of such association during the 
preceding year. The statement shall be sworn to by the 
secretary, and certified by the directors or a majority 
thereof. 


Examinations. 


Sec. 30. The affairs of every domestic building and 
loan association not in liquidation shall be examined by 
the Auditor of State, or by the building and loan clerk or 


Jeff 


one of the examiners, provided for by section twenty-five 
of this act, or by any bank examiner appointed and quali- 
fied under the laws of this State, under the direction of the 
Auditor of State, as often as shall be deemed necessary and 
without any notice to such association, its officers, or 
agents, and such examiner shall have the power and shall 
make a thorough examination into the condition, working 
and affairs generally of such association, and he shall have 
the power to examine any officer, agent or employe of such 
association, or any other person under oath touching the 
affairs thereof and for that purpose shall have the power 
to administer oaths; and all books, papers, records and 
assets of such association shall be subject to his inspection. 
Said examiner shall make report of his findings and file the 
same in the office of the Auditor of State and said auditor 
shall furnish a copy of such report to the association ex- 
amined. Said examiner shall report any violations of law 
or any unauthorized or unsound practices or any failure to 
keep full and correct accounts of the business: of such as- 
sociation. The fees for examining domestic building and 
loan associations shall be as follows: For examining asso- 
‘clations having assets of less than $25,000 a fee of $5 shall 
be charged; for examining associations having assets of 
over $25,000 and less than $50,000, a fee of $7.50 shall be 
charged; for examining associations having over $50,000 
assets and less than $100,000 assets a fee of $10 shall be 
charged. For each additional $100,000 of assets or frac- 
tional part thereof a fee of $5 shall be charged. Which 
amounts shall be assessed by the Auditor of State upon 
and paid by the respective associations so examined im- 
mediately upon the completion ‘of the examination, to the 
Auditor of State, but no association shall be required to 
pay for more than one examination each year. 


Notice to Directors. 


Sec. 31. Should the Auditor of State find any such as- 
sociation conducting its business in whole or in part, con- 
trary to law, or failing to comply with the law, he shall so 


2—33295 


18 


notify the board of directors of such association in writ- 
ing, and if, after thirty days, such illegal practice or fail- 
ure continue, he shall report the facts to the Attorney-Gen- 
eral, who shall cause proceedings to be begun in the proper 


court to revoke the charter of such association. 


Report to Attorney-General. 


Sec. 32. Should the Auditor of State find, upon exami- 
nation, that the affairs of any such association are in an 
- unsound condition, and that the interests of the public de- 
mand the disolution of such association, and the winding 
up of its business, he shall so report to the Attorney-Gen- 
eral, who shal! institute the proper proceedings for that 
purpose. | 


Refusal to Permit Examination. 


Sec. 33. The refusal of any such association to permit 
the examination of its affairs as authorized by this act shall 
be sufficient cause for institution of proceedings to wind 
up its affairs, as provided in section thirty-two of this act. 


FOREIGN ASSOCIATIONS. 


Statements. 


Sec. 34. It shall be unlawful for any corporation, as- 
sociation, or society organized under the laws of any State 
or Territory (other than the State of Indiana), or of any 
government foreign to the government of the United 
States, to conduct or engage in the business of the build- 
ing loan fund, savings or investment association, and of 
issuing stocks or bonds to members, payable in weekly, 
monthly or yearly installments or assessments, agreeing 
to pay thereon dividends or profits, or interest, or to pay 
off bonds by number consecutively or otherwise, without 
first having filed in the office of the Auditor of State a state-. 
ment, under the oath of the president, secretary and at 
least three of the directors, showing the name and location 


19 


of such corporation, association or society, date of incor- 
poration, the names of its officers, the amount of its capi- 
tal stock, the amount of its capital stock paid in, the amount 
of the assets of said corporation, association or’ society, 
the character of such assets and the fair cash value there- 
of, together with the fair cash value of all of the securities 
held by such corporation, association or society; the lia- 
bilities of such corporation, association or society, and the 
character of such liabilities; the par value and the amount 
of dues or assessments charageable on each share of stock: 
issued by such corporation, association or society; the pro- 
portion of such dues or assessments credited to the loan 
fund, expense fund, or other fund; when such assessments 
or dues are payable: the amount of premium and interest 
charged on loans made by such corporation, association or 
society; the amount of interest paid on debenture, paid-up 
or other stock issued by said corporation, association or 
society; and such other information concerning the busi-. 
ness of said corporation, association or society as may from 
time to time be required by said Auditor of State. 


Copy of Act of Incorporation. 


Sec. 385. In addition to the statement required by sec- 
tion thirty-four (34) of this act said foreign corporation, 
association or society shall file with the Auditor of State a 
copy of its act of incorporation, properly authenticated by 
the officer of the State in which said foreign corporation, 
association or society is Incorporated, a copy of the by- 
laws and rules governing it, and of each of the several 
kinds of the certificates issued to its shareholders, or stock- 
holders. 


Deposit of Cash or Bonds. 


Sec. 36. Every such foreign corporation, association 
or society doing business in this State shall conduct the 
same in accordance with the laws of this State governing 
domestic associations. It shall also deposit with the Au- 
ditor of State one hundred thousand dollars either in cash 


20 


or bonds of the United States, or of any State of the United 
States, or any county or municipal corporation in the State 
of Indiana, satisfactory to the auditor, or in lieu of any 
such deposit, any such foreign corporation, association or 
society shall file with the Auditor of State a written con- 
tract or bond executed by a responsible surety and guar- 
anty corporation or company to the approval of the Audi- 
tor of State. by which contract’ or bond said surety and 
ouaranty corporation or company shall agree that upon 
notice by mail from said auditor that any such foreign cor- 
‘poration, association or society is indebted to any citizen 
of the State of Indiana in any sum or sums, which indebt- 
edness it refuses to promptly pay, that it will at once pay 
such sum or sums to said auditor and continue so to do 
from time to time until such payments shall equal one hun- 
dred thousand dollars; and upon failure to make such pay- 
ment or payments, then such auditor shall at once revoke 
the license of any such foreign corporation, association or 
society, under section 37 of this act, and suit against such 
surety and guaranty corporation or company shall be 
brought by the State of Indiana on relation of the Attorney- 
General of said State, and any judgment recovered against 
any such surety and guaranty corporation or company shall 
include one hundred dollars damages and costs of suit ex- 
clusive of such sum or sums of indebtedness in favor of 
such citizen or citizens, which damages shall be the com- 
pensation of said Attorney-General for recovering such 
Judgment. Such surety and guaranty corporation or com- 
pany shall agree in writing, filed with the auditor before 
acceptance by the auditor of its contract or bond, to ac- 
cept service of process of court by service thereof on the 
auditor, who shall mail a copy thereof to the office of such 
corporation or company. And such auditor may, when- 
ever in his Judgment he: thinks any such contract or bond 
so filed in his office to be insufficient, request any such for- 
elgn corporation, association or society to file a new bond, 
satisfactory to such auditor, and upon failure to comply 
with such requirement said auditor shall revoke the license 


21 


of said foreign corporation, association or society, as pro- 
vided in said section 37, to do business in this State, and 
such foreign corporation, association or society shall not 
be entitled to enforce by legal proceedings any evidence 
of indebtedness against any citizen or citizens in this State 
or any mortgage against any property in this State until 
such requirement has been complied with. Any such for- 
eign corporation or society shall also file with the auditor 
a written instrument, properly executed, agreeing that a 
summons may issue against it from any county in the State, 
and when served upon the Auditor of State shall be service 
upon such foreign corporation, association or society. The 
auditor shall, however, mail a copy of the papers served 
upon him, postage prepaid to the home office of such for- 
elen corporation, association or society. 


License by Auditor. 


Sec. 37. Upon compliance with the preceding sections 
of this act by any such foreign corporation, association or 
society, and the Auditor of State is satisfied that it is do- 
ing a lawful and safe business, he may issue to said foreign 
corporation. association or society a license authorizing 
it to conduct its business in this State and to solicit sub- 
scriptions from the residents of this State to its capital 
stock. The Auditor of State shall have the power at any 
{ime, to revoke said license when said foreign corporation, 
association or society fails or refuses to comply with any 
of the provisions of this act, or when any such foreign 
corporation, association or society shall refuse to permit to 
be made the examination of the affairs of such foreign 
corporation, association or society hereinafter provided 
for, or when, upon examination, the Auditor of State shall 
find that such foreign corporation, association or society 
is not conducting its business in accordance with the law, 
or that the affairs of such foreign corporation, association 
or society are in an unsound condition: Provided, That 
upon the revocation of said license, said auditor shall 
cause a notice thereof to be mailed to the home office of 


22 


such foreign corporation, association or society, and to be 
published in at least one newspaper published in the city 
of Indianapolis: And, provided further, That after the 
publication of such notice it shall be unlawful for any agent 
of such foreign corporation, association or society to re- 
ceive further stock deposits from members residing in this 
State, except payments on stock on which a loan has been 
made. 


Deposits—How Held. 


Sec. 38. The deposit made with the auditor shall be 
held as security for all claims of residents of this State 
against said foreign corporation, association or society, 
and shall be hable for all judgment or decrees. thereon. 
Such foreign corporation, association or society may col- 
leet and use the interest on any security so deposited, as 
required by section thirty-six (36) of this act, so long as 
it fulfills its obligations and complies with the provisions 
of this act. It may also exchange them for other securities 
of equal value and satisfactory to the auditor. All se- 
curities or cash deposited with the auditor shall be imme- 
diately deposited by him with the Treasurer of State, who, 
with his sureties, shall be responsible for the safe keeping 
thereof. The treasurer shall deliver such securities only 
upon written order of the auditor. 


Agents to Procure Certificates. 


Sec. 39. Every agent or person engaged, directly or 
indirectly, in soliciting subseriptions to the eapital stock 
of any such foreign corporation, association or society shall 
first procure from the Auditor of State a certificate show- 
ing the appointment of such person as such agent of said 
foreign corporation, association or society, to which cer- 
tificate the Auditor of State shall attach a certified copy of 
the statement of condition of such foreign corporation, as- 
sociation or society. It shall be unlawful for such auditor 
to issue such certificate except upon the filing in his office 
of a written appointment under the hand of the president 


9 
2) 


| AS) 


and secretary of said foreign corporation, association or 
society, attested by its corporate seal. Such certificate 


shall be renewed annually in the month of January of each 
year. 


Examination by the Auditor. 


Suc. 40. The Anditor of State shall examine, or cause 
to be examined, under the provisions of this act, whenever 
in his judgment it may be necessary for the interests of 
the shareholders or stockholders of said foreign corpora- 
lon, association or society residing in this State, every de- 
tail of the business of any said foreign corporation, as- 
sociation or society transacting business in this State. 
Said examination shall be made at the expense of the for- 
eign corporation, association or society examined, and con- 
sent to make such examination shall be filed before any 
certificate authorizing such foreign corporation, associa- 
tion or society shall be granted by said Auditor of State. 


Reports by Association. 


Sec. 41. Every such foreign corporation, association 
or society authorized to transact business in this State shall 
on the first day of January in each year file a report under 
the oath of its president or secretary, and which shall be 
certified to by at least three directors showing the gross 
amount of assessments, dues, fines, membership fees and 
all moneys collected by said foreign corporation, associa- 
tion or society from shareholders or stockholders residing 
in this State during the previous year. Such statement 
shall also show the amount of money loaned by said for- 
eign corporation, association or society to any of its share- 
holders or stockholders residing in this State during the 
previous year. Any such foreign corporation, association 
or society shall pay to the Auditor of State, to be by him 
paid into the treasury of the State, the sum of three dol- 
lars ($3.00) on every one hundred dollars ($100) received 
by such foreign corporation, association or society from 
the shareholders or stockholders residing in this State, less 


24, 


the amount actually loaned to the shareholders or stock- 
holders of such foreign corporation, association or society 
residing in this State 


statement—Filing of. 


Sec. 42. Every such foreign corporation, association 
or society shall, in addition to the report required by sec- 
tion forty-one (41) of this act, on the first of January of 
each year file with the Auditor of State a detailed statement 
showing separately the amount of membership fees, dues. 
interest, premium, fines, forfeitures, assessments, expense 
fund, receipts and all other moneys received by it, together 
with a full showing of amounts paid on loans, withdrawals, 
losses, salaries, and all other expenses, dividends, interest 
or other expenditures; and it shall further show the 
amount of the assets of said foreign corporation, associa-- 
{ion or society, the character of such assets, the fair cash 
value thereof, together with the nature and fair cash value 
of all securities of such foreign corporation, association or 
society; and it shall also show the labilities of such for- 
eign corporation, association or society, and the character 
of such habilities; the par value and the amount of dues 
or assessments chargeable on each share of stock issued 
by such foreign corporation, association or society; the 
proportion of such dues or assessments credited to the loan 
fund, expense fund or other fund; when such assessments 
or dues are payable: the amount of premium and interest 
eharged on loans made by such foreign corporation, asso- 
ciation on society; the rate and amount of interest paid on 
debenture, paid up or other stock issued by such foreign 
corporation, association or society, and such other infor- 
mation concerning the business of such foreign corporation, 
association or society as may from time to time be required 
by the Auditor of State 


Fees Collected by Auditor. 


Sec. 43. The Auditor of State shall charge and collect 
from such foreign corporation, association or society, for 


25 


filing the statements and other papers and issuing the cer- 
tificates required to be filed and issued by this act the same 
fees as are charged and collected from insurance com- 
panies doing business in this State, which are chartered 
and incorporated under the laws of the State in which such 
ioreign corporation, association or society is incorporated. 


Publication of Settlements. 


Sec. 44. The Auditor of State shall cause to be printed 
once in two papers of general circulation representing the 
two political parties casting the highest number of votes 
at the last preceding election, published in the city of In- 
dianapolis, the annual statement of such foreign corpora- 
tion, association or society required to be filed in his office 
by section forty-two (42) of this act. The cost of such 
publication shall be paid by such foreign corporation, as- 
sociation or society. 


Penalty for Unlawful Business. 


Sec. 45. Any person or persons who, either directly or 
indirectly shall solicit subscriptions to the capital stock of 
any such foreign corporation, association or society, or act 
as agent for and such foreign corporation, association or 
society, without first procuring the certificate required in 
section thirty-nine (39) of this act, shall be deemed guilty 
of a misdemeanor, and upon conviction thereof, shall be 
fined in any sum not exceeding five hundred dollars ($500), 
to which may be added irnprisonment in the county jail not 
exceeding thirty (30) days 


Receiver. 


‘Sec 46. That where a foreign building and loan as- 
sociation doing business within this State has become in- 
solvent, and its affairs are being wound up, by a receiver, 
the failure of such association to have comphed with the 
laws of the State respecting its admission to do business 
therein, shall not effect the right of such receiver to bring 
any suit necessary to wind up the affairs of such associa- 
tion. 


26 


GENERAL PROVISIONS. 


Publication of Reports. 


Sec. 47. The Anditor of State shall annually compile 
the reports of all such associations required to be filed in 
his office and shall publish the same in his annual report 
to the Governor and General Assembly, together with a re- 
port of the operation of the building and loan department, 
the receipts and expenses of such department and such ad- 
ditional information respecting the building and loan as- 
sociations doing business in the State of Indiana as may be 
of general interest. 


Fees of Department. 


Sec. 48. All fees and charges collected by the Auditor ~ 
of State under any provisions of the law of this State from 
all building and loan associations, shall be kept in a sep- 
arate account and paid to the State Treasurer accompanied 
by a report thereof, once each month. The salaries of ex- 
aminers and other expenses of the building and loan ‘asso- 
ciation department shall be paid out of any monevs in the 
state treasury not otherwise appropriated. 


Disclosures of Examiners—Penalty. 


Sec. 49. It shall be unlawful for any inspector or ex- 
aminer appointed or acting under the provisions of this 
act to disclose to any person otherwise than officially to the 
Auditor of State by the report made to him, or in compli- 
ance with the order and precept of a court, the names of 
stockholders or depositors in any such association, or any 
‘information respecting their private accounts. Hivery in- 
spector or examiner who violates the foregoing provision 
shall be guilty of a misdemeanor and on conviction thereof 
shall be fined in any sum not exceeding one hundred dol- 
lars. 


27 
Repeal. 


Sec. 00. All laws and parts of laws in conflict with this 
act are hereby repealed; and the following acts upon the 
same subject matter and all acts amendatory thereof, are 
hereby expressly repealed, to wit: 

The act approved March 11, 1875, published on page 
17 of the acts of the General Assembly for that year. 

The act approved March 24, 1879, published on page 
SO of the acts of the General Assembly for that year. 

_ The acts which became a law by lapse of time without 
the Governor’s signature March 11, 1885, published on page 
81 of the acts of the General Assembly for that year. 

The act approved March 7, 1887, published on page 40 
of the acts of the General Assembly for that year. 

The act approved March 3, 1893, published on page 274 
of the acts of the General Assembly for that year. 

Section 89 of the act approved March 6, 1891, and which 
section 1s published on page 233 of the acts of the General 
Assembly for that year. 

The act approved March 8, 1897, published on page 284 
of the acts of the General Assembly for that year. 

The act approved March 5, 1909, published on page 174 
of the acts of the General Assembly for that year. 

Provided, however, That all rights acquired and all acts 
performed in pursuance of the provisions of any act so re- 
pealed shall not be affected by such repeal. 


PAGE 
GEO TIVES orgy koe eae a on fp ae eee eeNohefalh'S Chas ols 9's Biante te a hea 16 
Articles of ASSOCIATION. : (Nii. are cn ee ite tee ae emer ea ae PR Rey Tce (e 4 
Assignment. of Securities... cock csacien che os eins a ee ae ee 12 
Bowmds—of Officers) os. 8 ieee x ere aie i, eee ms cease ee 5 

of FIXamMinersy lao 2. sas eae aes ea ok an ee a een 14 


Borrowing Money x0. eis vos ee Bade oie oe cer per pee eee lees clge ne cee ee 
By-Laws 
Clerk, Building and Loan. oy wien ae es et ial a 


Collections AlLGWeds «sisi. aaa ek awe eels slate Pe iy, aioli ne eee 7 
Consolidations a. fh... ss wieaie acgrelccel & ate eR ees ei ue ea eee ae 11 
Contingent) Fundy egeices ae eee eee pen gita) #1 bo Rie Die wlan e Rtete do ate ee ea 
Definitions 30s sie ies ok Sie, chet aie sinew es Gees halla Soha esi ice ae Obs. 
Department; Created (7): asi areca ete eae Qi2kt Sadek Dh we 13 
Directors 5b dca eile SS Re ie eee ote nn a ek 5 
DISCLlOSUTES® 5.25 oy5 ieee ou ey oe ene an oe al es eg en 26 
BA k pis (21000 SAE MG ir OTe ure Are bn Buen As oa 13 
EXAMinations. ccs. falas lee, cape wideecoea phe OP epee reget nee st 16 
Refusal: to. Permits. seiko cee eee pen eee slay le «tate weedte ni ndiceaae 18 
TOXAMMINETS sal 8 05d Pek te ak lo. elecete ape eR eo Pace Re eee en 14 
DASCLOSULE DY ck o7e Sista we «vad erates ae ee ee eg Bir ads iste eats ae 26 
Expenses, How waid ico .8¢ 2S 2 sa Rebs se eecae fore ee ae ee a 
H'ees—Disposition: Off es. oe chn sd dw 22's wie sia eg keen ee eee eo ae 2% 
Piling ArtiGles: 0  lki.s ue pele tira eek ames iia Seg aay eaten 4 
Examinations and Reports 20-25 aie crieg ecu aps saree siete ees ee 16 
ils: ane eA Serie ira Ae terrane ron Aner RC Meet N A 8 
Against. Deceased “Member .2.%:2. sic cas wa cere se nie ob Oaieee 2 ae 7 
Foreclosures. 6 an sary a5. 9 Woes a nslaonstn hex Wo lca deucb at ey ot detalles SEN aa yoy 11 
Foreign Associations— 
Agents OeruliCd CES acs cs si aeh ote at kee BE SAREE nytt 29 
Application: forsbivense! Maas ape ste pee eit es eae cer ee 18 
Deposits =-Requiretivtig cae alacant oe bier le See en oy 
EV OW O10 yan. skies palate a, apse eeushin ope bprangy s selaee niyo sa piel amey nein es sate ean 99 
EXsMIMN atone. Sse I ee Ee Sie hol ae 99 
HOS sn, ee hanoste tie Deere eRe Scat eal ody cleceae4 4» “e ARcay eh  Win she teen a 24 
Incorporation: A ct—-Copy OFF suite et. kar subnet a ae ee eran tan ee ae 19 
License ‘By AUGItOI eh este ei! ae sei ta alee gee sl eae a: hey gia ie 21 
Penalty for Unlawiul sBusiness-s cau. oc bisa veletesiels ace. vtye een ee Wien Oe 
ROECOLVER Mises aS aoe ee OB ere ee ees oes Gas ne ee ok: aad aa oer 25 
Revocation of License ...... Bee Welsh, aking Sane Var 7s eats ly Rik a ee Se aren 
Reperts’ jaca ae ea eee oii Seat oat oe ae 23 
ATYDULA TIS A Sop eae De eee UES ane Rt sada en eaheee a alae "ikea SA eras ee 293 
Publication): thee dase eee “yealied 8.8.5, ae a . 25 


IUSA RA ELOT TS Fe ee eee ae ere aT hacia Pa seesd fa Ses lee Pe aha ic CO Re 


PAGE 

WLS Matias Mitete ns ess) ead 4 3s BPs SSNS ako Teste Gs ou aean ect Ng EMT ecole Gee Tne 10 
NSO TORET GIT NA OG" ac, 2g. ie Me neta in ERA te mee ced ete TC) 

SOUR AACS RY ON aa ae ae ae Ore aah, - PR a AIMS er tly Ml Ae OM Bo 8 


MUR hier VOTUINER Vea sche, 2 he a Re UCC Age RES, SoA EET 


Ry SCIEN Sool ck ve Siete Cie sa haltte et He earl Liat nee beaks MoS r ta tee Sa 8 

ECHR MREVENT Li Pst wiROL a SS seh cele gin OM EN alg da atlas Ar cme ek AER ated Rte a OO eee ee fe 9 
Membership Fees ........ SP RE yen ng NaN aD see LR Gee A hy RN EG 6 
tC eM Ne wad erie scr SARE IN He Ore RA RR eabia ate A ae Mey daca TG MCP Aes. aap 3 4 
me LOCtEOLC OL CI COLTS ae (p siete wk Gates ob oatte, bara lace SOE ea ee 6 
rem RITOCLOLS <5 sip ccc8e gb yc ce aca See erates Ge Cee RU Ae NEE te er, 1F 
Pa MAL VISTIS MMe leveeler eign Siete e's bo SF wf Scie erate otek Thier aoe a NaI RES AF eaeaake vee eae ORC 9 
Byer GIA OW CL Sie ude a'cos: oo anne Goa obs eer CRUE ahat vb 6 ERR nose ann aia ol ae a 10 
IWS SRC Se Be Sh Aree ead PUR eR A Dn Ao Agee am a nid Lhe a 13 
Pec ereer ting ATTICIES = i 35s ue ces is aah he EN ee eee 4 
POP CINOUImOnE PAATIS Sct E Part ity eee kOe Gd Taner oS PaeT UES EPs 9 
eae EMER Te NGO. eae cada dle Be cule doris hood etal Ce ate. haa mene enema leas 27 
Peete oA EI L COA TCILOS: “scoters ccc see eevee Sale oe aR ine Tees Tae GaGa lea ote 14 
MRPUEA LOM UR RELL G5 fgg 'ece.0%s wcoag tines hoa, ates o:Guy aluneie alaectje hfe ners Wah ehanaiy Eat evs ete 15 

PERU Eres VEC IDOLS. 0. SW er cia cs Gee 0 canarole ee eines: 2 RMR EL aes er en REI 16 

PPC LOr CO ATLOMMe Y-General (oF fuera ole withatety Ler halans crv oe hale 18 

BP LLIRIR CA BIOL: Wes) 2's sore «a: Hetero OE a Stee ats Gee aR eta AUP a rn Rae fern a 
Ree eeE ea RC ESET ETIOL Cit ys Fetes onc aetees. sage: we eho RTT oeeenteLe eanarn eat ROR 14 
MOcEClaTVsOremtate——b Wing Articles. . oy. dic acs eae be eee iat aie ers or 4 
Deere etd Cee PV SLO TITTIG@NI UST cs. ote en ets 00d. sic: (alee eoitod 4p oo UST, oie. MRSA eM iR el ate delle aah les 11 
MEOCHUIGICCr S| MECLINGS | ieee bis ac Helse ae aa ra RAS Ste tae emt anme Wee o's 5 
Reine ee ILIOUIT CY enka Ol an ulcolad vuln ess PAU aA nae a BAVA ak: hi wen ne 6 

Tnucresse or Detrease oo. .....2...4 5. ENDL ER irae GND ie v2 ben ea 6 

POV IOe ay Sivcie Oui dtsalee alas se ae eR Beep aE Merch YR We ee 6 

Le Ca ices ae AEs Re anh Sea Steet Need sce ie a PA Cy rea 6 
Re et CST PN Re TAL Ng ore sn iS, ous aati re ohare ale RO ite ea ULAR ME Sen 13 
PIE TTP RI OM rich. os a he kes a Seg ORE PARR a PN ee aig, el YON LP a ae Seen ce es 7 


0112 115544345 


oe q 


